This breakfast briefing will take a look at the outlook for the risk reduction market - looking in particular at how schemes can best prepare to conduct an insurance transaction, capacity in the market as well as the key factors that are likely to affect both pricing and demand.

So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

The council announced the rate was to remain unchanged at 2.5%, following negative return on investments over the first half of the year.

The positive turn in the equity markets last year did not justify a rise in the minimum interest rate guarantee, the council said. In addition, it claimed the downturn in the markets in the first half of 2006 effectively cancelled out the positive results of the previous year.

The decision was described as “a gift to the life insurers” by the trade union, Schweizerischen Gewerkschaftsbund.

“The development within the financial markets, the good returns at the end of the last year and the positive prospects would have justified a rise of the minimum interest rate to at least 2.75%,” the union declared.

According to the Schweizerischen Gewerkschaftsbund the council’s reason for not increasing the interest rate did not hold up to scrutiny.

“A correct comparison of the capital returns of the first half of the year to those of the previous year would have resulted in an increase to at least 2.75%,” it concluded.

Almost exactly three years ago, the unions vehemently objected to the lowering of the minimum interest rate guarantee.

Travail Suisse, the Swiss trade unions confederation, had claimed the government was “bowing down to life insurers.” It had said the move would severely threaten the Swiss second pillar pension system.